Aug 26, 2020, 10:00 EST
Bronx, United States, Aug 26, 2020, 10:00 /Comserve / -- GMM Pfaudler Limited announced that it had signed the required agreements to acquire 54% stakes in the global business of its parent company
Gujarat, August 21, 2020: On Thursday, i.e., August 20, 2020, GMM Pfaudler Limited announced that it had signed the required agreements to acquire 54% stakes in the global business of its parent company, Pfaudler Group, from the private equity firm Deutsche Beteiligungs AG Fund VI. According to the agreements signed, GMM and the Patel family will obtain a 54% and 26% equity stake in the parent company respectively, while DBAG will still retain the remaining 20% stake. The stakes bought by GMM are expected to be around USD 27.4 million and will be funded through internal accruals and debt.
As per the deal, GMM will become the main holding company, and the whole business of Pfaudler will be consolidated into the company. The consolidated revenue of the company will be Rs. 20 billion and EBITDA will be around Rs. 2.5 billion. According to the Managing Director of GMM, Mr. Tarak Patel, GMM has grown a lot in the last five years, and he believes that its time for the company to step up to the next level through this acquisition. Being a part of Pfaudler for three-plus decades, both the companies have a collaborative relationship.
Previous year's financial reports of the company showed an incredible increase in the revenues and profits. In the FY20, the company experienced a rise of 18% in the revenues and 41% in the Profit after Tax. The EBIDTA also rose from Rs. 854.16 million in FY18-19 to Rs. 1168.93 million in FY19-20. The net worth of the company also increased by 28%. The annual report clearly explains the company's success and growth over the years and its decision to buy the majority stakes in the Pfaudler Group.
GMM now aspires to be the world's largest provider in corrosion-resistance technologies, systems, and services. It currently has 12 manufacturing units situated across eight countries and four continents.
About GMM Pfaudler
Established in 1962, GMM Pfaudler was earlier known as Gujarat Machinery Manufacturers. In 1987 its 40% equity stakes were bought by Pfaudler Inc., USA, world's leading Glass Lined equipment provider, to form a joint venture. Pfaudler Inc. in 1999 increased its stake to 51%, and the name of the company was changed to GMM Pfaudler Ltd.
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